# Blanchard & Kahn conditions are not satisfied: indeterminacy due to rank failure

**URL:** <https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116>\
**Category:** Steady state\
**Created:** [19 March 2023 14:32 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116 "2023-03-19T14:32:13Z")\
**Posts on this page:** 1\
**Showing post:** 3

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [20 March 2023 14:55 UTC](https://forum.dynare.org/t/blanchard-kahn-conditions-are-not-satisfied-indeterminacy-due-to-rank-failure/22116/3 "2023-03-20T14:55:04Z")

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You may have the issue at

> [@Timing of capital in two sector economy](https://forum.dynare.org/t/timing-of-capital-in-two-sector-economy/2325):
>
> Hello all, I am building a two-sectoral model, and I have a question about the timing of sectoral-capital variables: In my model, T and N are sectors, hence kT is capital in sector T and kN is capital in sector N. Then, I assume that the economy’s aggregate capital is simply: k = kT + kN. However, I assume only one law of motion for aggregate capital such that: k = (1-delta)\*k(-1) + i - written in Dynare language. It is clear to me that k is a predetermined variable and should be treated as su…

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